# Justpoint Financial Model

AI-powered plaintiff-attorney matching platform for personal injury litigation, earning a contingency-fee cut from settled claims.

- Canonical: https://finamodel.com/startups/justpoint
- Excel download: https://finamodel.com/startup-models/justpoint.xlsx
- Category: Marketplace
- Model type: Marketplace / GMV
- Funding round: Seed
- Funding: $6.9M
- Founded: 2020
- Geography: United States; currently operating under Arizona's Jan 2021 regulatory change that permits non-attorney fee-sharing [DECK, slide 10].
- Customer: B2B

## About the company

Justpoint uses AI to assess personal-injury claims and match plaintiffs with suitable attorneys from a network of more than 1,000 litigators. The platform aims to improve legal access and reduce attorney time spent on marketing and intake.

The company takes 10% of total claim payouts from the attorney's share, leaving the plaintiff without a direct platform charge. Attorney-claim matches grew more than 50% month over month in the period shown, but revenue is naturally delayed because payment arrives only when cases settle.

The model is a claims-cohort forecast rather than conventional SaaS. Claims submitted, qualification, attorney match rate, average settlement value, the 10% fee, and settlement lag determine recognized revenue. Consumer acquisition cost, case-mix quality, attorney capacity, and the duration of claims create the key timing and cash-flow sensitivities.

## What's included

- 5-year monthly revenue build with stage-appropriate growth assumptions
- Full P&L, headcount plan, and operating-expense schedule
- Cash-flow statement, runway, and burn-rate tracking
- Valuation via exit multiple with a DCF cross-check
- Returns analysis with MOIC and IRR
- Unit economics including CAC, LTV, payback, and cohort retention

## Product & value proposition

- Two-sided platform: plaintiffs submit claim details on justpoint.com; Justpoint's AI assesses claim merit, estimates settlement value, and matches the plaintiff to the most suitable attorney from a network of 1,000+ litigators.
- For attorneys: reduces back-office burden; currently ~75% of law-firm time spent on marketing and intake.
- Key outcome claim: plaintiffs matched via Justpoint receive 3.2× higher settlement payouts vs. expected payout benchmarks.
- Second product described as enabling attorneys to do more efficient discovery (cost reduction angle); primary product is the matching/referral platform.

## Market

- Deck presents three nested SAM figures (source: U.S. Chamber Institute for Legal Reform, 2018):
  - $127B - revenue of all law firms in the U.S. tort system (broadest SAM)
  - $36B - revenue of personal injury law firms (target SAM)
  - $12B - referral fees from personal injury claims (direct SAM / addressable fee pool)
- No TAM or SOM figures provided; no market growth rate cited.
- Deck labels all three as "SAM" - the $12B referral-fee pool is the most relevant revenue proxy for Justpoint's 10%-of-payout model.

## Revenue model

- Justpoint takes 10% of total claim payout, sourced from the attorney's share:
  - Total claim payout splits: plaintiff 65%, attorney 35% gross → after paying Justpoint the attorney nets 25%.
  - Justpoint's 10% comes out of the attorney's fee, so plaintiffs pay nothing.
- Enabled by Arizona's Jan 2021 regulatory reform allowing non-attorneys to receive a percentage of lawsuit payouts.
- Revenue per claim = 10% × gross settlement value of the case.
- Channel: direct consumer acquisition via justpoint.com (replacing billboard/opaque marketing).
- Attorney network: 1,000+ litigators available for matching.
- Revenue timing: lags claim filing by months to years (personal injury settlement timelines); cash is received at settlement, not at intake.

## Traction & metrics

- >50% month-over-month growth in attorney-claim matches.
- Bar chart (Jan 2021 – Oct 2021) shows attorney-claim matches growing from ~2 in Jan to ~108 in Oct 2021. Approximate monthly values read from chart:
  - Jan: ~2, Feb: ~8, Mar: ~22, Apr: ~11, May: ~25, Jun: ~29, Jul: ~36, Aug: ~53, Sep: ~99, Oct: ~108.
- No revenue figures disclosed (expected given settlement lag).
- No customer count, churn, or retention figures in deck.
- 3.2× higher settlement payouts for matched plaintiffs vs. expected.
- Over 80% of meritorious claims currently lack access to justice due to cost.

## Unit economics

- No CAC or LTV figures provided.
- Implied LTV driver: 10% of settlement value per claim. Average personal injury settlement size not stated.
- Attorney economics: attorneys receive 25% net vs. 35% gross; net savings on marketing/intake presumably offset the 10% fee paid to Justpoint.

## Competition / moat

- Positioning matrix (slide 11) plots competitors on two axes: (1) using technology to decrease litigation costs, (2) aligned incentives to find the best lawyers for claimants.
- Competitors named: eDiscovery companies, law firms, lead generators, patient advocates.
- Justpoint positioned as uniquely combining both axes (tech + aligned incentives).
- Moat claimed: proprietary AI for claim-merit scoring and settlement-value prediction; network of 1,000+ litigators; regulatory first-mover in Arizona fee-sharing rules.

## Team & funding ask / use of funds

- Founders:
  - Victor Bornstein, PhD - CEO & Co-founder; Assistant Professor of Healthtech at Mount Sinai; Member at The Fund; Fellow at Digitalis Ventures.
  - Oleksandr (Sashko) Zakharchuk - CTO & Co-founder; Google Developer Expert in Machine Learning; engineer at Google; technical advisor to Seed–Series C startups (incl. Brainly).
- Employee base: Alumni of Google, Accenture, HUGE, Brainly, Motorola, HomeTeam, Icahn School of Medicine, Duke Nursing, U.S. government. 57% women, 54% 1st-generation immigrant, 39% Black, 36% Latin American, 15+ languages spoken.
- Current round: $4M.
- Previous round: $1M.
- Notable prior investors: Vivek Garipalli (Lead, Angel; co-founder & CEO of Clover Health, founding board member of Flatiron); Amino Capital; Chris Smoak (Angel; co-founder & CTO of Atrium).

## Recommended financial model

- **Archetype + why:** Contingency-fee marketplace / claims-volume model. Revenue is a function of (claims matched × average settlement value × 10% take rate). This is not SaaS (no recurring subscription), not GMV in the traditional sense, but a volume-of-claims × settlement-size model analogous to an insurance or legal-finance book. The appropriate structure is a claims-cohort P&L - track claims by intake month, apply an assumed settlement lag, then recognize revenue at settlement. A simplified 3-statement model can sit on top.

- **Forecast horizon & granularity:** 5 years (2022–2026); monthly for Year 1–2, quarterly for Year 3–5. Monthly granularity important because growth rate is >50% MoM and settlement timing matters for cash flow.

- **Key drivers & assumptions:**

| Driver | Value |
| -- | -- |
| Monthly claim matches, Oct 2021 (base) | ~108 |
| MoM growth rate in matches | 50% |
| MoM growth rate decay - converges to | 5–8% MoM by Year 3 |
| Average personal injury settlement value | $50,000–$80,000 |
| Justpoint take rate | 10% of total settlement |
| Revenue per settled claim | $5,000–$8,000 at base settlement |
| Settlement lag (intake to cash) | 12–24 months |
| % of matched claims that settle (conversion) | 70% |
| Gross margin (platform costs as % of revenue) | 60–70% |
| States operating in (regulatory expansion pace) | Arizona only in 2021 → 3–5 states by Year 3 |
| CAC (plaintiff acquisition) | $150–$300 |
| Headcount growth | scale support/ops linearly with claim volume |

- **Scenarios (Base / Bull / Bear - which variables flex):**
  - **Base:** 50% MoM growth decays to 8% by end of Year 2; 70% claim settlement rate; $65K avg settlement; 12-month lag; 3 states by Year 3.
  - **Bull:** Growth sustains at 50%+ MoM through Q2 2022 (network effects kick in); rapid multi-state regulatory expansion (5+ states by Year 2); avg settlement $90K.
  - **Bear:** Regulatory setback (Arizona law challenged or other states don't adopt); MoM growth decays to 15% by mid-2022; settlement lag stretches to 24 months (cash crunch); avg settlement $40K.

- **Required sheets / outputs:**
  1. **Assumptions** - all drivers in one tab, clearly tagged vs..
  2. **Claims Volume Model** - monthly intake vs. settlement cohorts; settlement lag waterfall.
  3. **Revenue Build** - settled claims × avg settlement × 10% take rate → monthly revenue recognition.
  4. **P&L** - Revenue → Gross Profit (platform/AI costs) → OpEx (salaries, S&M, G&A) → EBITDA → Net Income.
  5. **Cash Flow** - critical: revenue recognized at settlement, not intake; need to model the cash lag explicitly; burn rate and runway vs. $4M raise.
  6. **Balance Sheet** - simplified (cash, deferred revenue / contingent receivables, equity).
  7. **KPI Dashboard** - monthly claims intake, settlement volume, revenue/claim, cumulative matches, attorney network size, implied runway.
  8. **Scenario toggle** - Base / Bull / Bear switch feeding all output sheets.

## Frequently asked questions

### Is the Justpoint financial model free?

Yes. The Justpoint model is a free Excel download with live formulas.

### Can I change the assumptions?

Yes. The workbook is editable and its live formulas recalculate when assumptions change.